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Mar 31, 2022
MITT Q1 2022 Earnings Report
AG Mortgage Investment Trust reported financial results, maintained focus on growing residential mortgage loan portfolio, and executed securitization strategy.
Key Takeaways
AG Mortgage Investment Trust reported a book value per share of $13.68 and an adjusted book value per share of $13.37 as of March 31, 2022. The company's investment portfolio was $3.7 billion. They executed three securitizations and maintained ample liquidity.
Book Value per share was $13.68 as of March 31, 2022.
Adjusted Book Value per share was $13.37 as of March 31, 2022, a decrease of approximately 6.6% from December 31, 2021.
The company had a quarterly economic return on equity of (5.2)%.
Dividend per common share was $0.21.
MITT
MITT
Forward Guidance
Arc Home continues to drive growth in originations with a 2022 originations forecast of $4.5 billion to $6.5 billion compared with $4.4 billion in 2021.
Positive Outlook
- Expansion of delegated correspondent channel in Q2 2022 partnering with brokers and top originators to drive funding growth
- 2022 originations forecast of $4.5 billion to $6.5 billion compared with $4.4 billion in 2021
- 2022 Non-Agency originations forecast of $3.5 billion to $5.0 billion compared to $1.7 billion in 2021
- MITT purchased $0.4 billion of loans from Arc Home during Q1 2022 representing 41% of MITT’s total loan purchases
- Arc Home generated after-tax net income of $7.1 million in the first quarter
Challenges Ahead
- gain on sale margins decreasing from 161bps as of December 31, 2021 to 125bps as of March 31, 2022
- Originated $0.8 billion of loans during the first quarter of 2022 as compared to $1.1 billion in Q4 2021
- The decrease in fair value on MITT's investment in Arc Home approximated $2.5 million
- Book Value per share decreased from $14.64 to $13.68
- Adjusted Book Value per share decreased from $14.32 to $13.37